1 Magnificent S&P 500 High-Yield Dividend Stock Down 25% to Buy and Hold Forever

Core Viewpoint - Realty Income is positioned as a high-yield dividend stock that offers a reliable income stream, trading approximately 25% below its pre-pandemic levels, making it an attractive investment opportunity for long-term investors [1]. Company Overview - Realty Income is one of the largest internationally diversified real estate investment trusts (REITs), utilizing a net lease approach where tenants cover most property-level expenses [2]. - The company has a market capitalization of around $50 billion, significantly larger than its closest peer at$14 billion, which enhances its access to capital markets [5]. Dividend Characteristics - Realty Income currently offers a dividend yield of 5.5%, which is substantially higher than the S&P 500's yield of 1.2% and the average REIT yield of 3.6% [3]. - The company has a 30-year track record of annual dividend increases, averaging a 4.4% annualized rate, with 110 consecutive quarterly increases [4]. Portfolio and Diversification - Realty Income's portfolio consists of approximately 15,600 properties, providing significant diversification across various sectors, including retail, industrial, and unique assets like casinos and vineyards [5][6]. - The REIT's investments span both North America and Europe, allowing for various growth opportunities through acquisitions [6]. Growth Potential - The company anticipates acquiring nearly $4 billion in new properties in 2024 and expects similar amounts in 2025, with adjusted funds from operations (FFO) projected to grow in the mid-single digits for 2024 and low single digits for 2025 [7]. - Realty Income's slow and steady growth strategy is seen as a solid foundation for a buy-and-hold portfolio, providing reliable dividends while allowing for the inclusion of faster-growing companies [8].